Suppose that over the last three years, there has been a 10% increase in real GDP, but a 5% increase in nominal GDP, we might conclude that a) The economy has entered a recession. b) The price level has increased, with 5% inflation. c) The price level has decreased, with 5% deflation. d) The economy has experienced a combination of low growth and inflation.

Suppose that over the last three years, there has been a 10% increase in real GDP, but a 5% increase in nominal GDP, we might conclude that a) The economy has entered a recession. b) The price level has increased, with 5% inflation. c) The price level has decreased, with 5% deflation. d) The economy has experienced a combination of low growth and inflation.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 12SQ

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